Ukraine - Country Economic Memorandum : Strategic Choices to Accelerate and Sustain Growth

This report undertakes a comprehensive assessment of Ukraine's growth experience over the past decade. It shows how vulnerabilities were allowed to accumulate during the economic boom. And how growth, averaging seven percent annually between 2000 and 2008, was achieved without tackling Ukraine's well known weaknesses in the investment climate and public sector governance. The report also traces the emergence of large structural fiscal deficits and fiscal pressures since 2004, as buoyant revenues and terms of trade gains masked an increasingly unsustainable fiscal position. It shows how international excess liquidity allowed Ukraine to attract vast capital flows, intermediated through the banking system, while financial sector regulation remained inadequate. And it analyzes how a poor investment climate, low competitive pressures, limited innovation and slow structural transformation of the economy are all interlinked and perpetuate Ukraine's dependence on a few commodity based exports. Consequently, the report argues, the route to sustained recovery in Ukraine lies in deepening key reforms. The report carries out an in-depth diagnostic of Ukraine's growth drivers at the macro, sector and firm-level and derives key constraints to sustained growth from this analysis. The recommendations point to three main challenges that deserve priority attention if Ukraine is to re-launch its economy on a sustained growth path. First, Ukraine has to tackle its fiscal crisis to restore macroeconomic credibility and create fiscal space for investments needed to support private sector growth. Second, Ukraine needs to improve its investment climate and fix the financial system to attract private sector investment. Third, Ukraine needs to tackle the problems with public sector governance through deep public sector, judicial and administrative reforms. Since this is a large agenda, the analysis identifies short and medium term priorities. The report also argues that the key reforms highlighted above are closely interlinked and that cosmetic and halfway measures will not do.

Bibliographic Details

Main Author:	World Bank
Format:	Country Economic Memorandum biblioteca
Language:	English
Published:	World Bank 2010-08-31
Subjects:	ACCOUNTING, ADVANCED ECONOMIES, AGRICULTURAL COMMODITIES, ARREARS, BALANCE OF PAYMENTS, BALANCE SHEETS, BANK BORROWING, BANK OPERATIONS, BANK SUPERVISION, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SYSTEM, BANKRUPTCY, BARRIERS TO ENTRY, BENEFICIARY, BUSINESS ENVIRONMENT, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL INVESTMENTS, CAPITAL STOCK, CASH BALANCE, COMMERCIAL BANK, COMMERCIAL BANK LENDING, COMMERCIAL BANKS, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMPANY LAW, COMPLIANCE COSTS, CONFLICT OF INTEREST, CONSUMER DURABLES, CONSUMER PRICE INDEX, CONTRACT ENFORCEMENT, CORPORATE DEBT, CORPORATE GOVERNANCE, CREDIBILITY, CREDIT GROWTH, CREDIT POLICIES, CREDIT RISK, CURRENCY, DEBT ACCUMULATION, DEBT LEVEL, DEBT SERVICE, DEMOCRACY, DEMOGRAPHIC, DEPOSIT, DEPOSITORS, DEPOSITS, DEVALUATION, DEVELOPING ECONOMIES, DOMESTIC BANKS, DOMESTIC MARKET, DOUBLE TAXATION, DURABLE, DURABLE GOODS, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC DOWNTURN, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET ECONOMIES, EMERGING MARKETS, ENTERPRISE PERFORMANCE, ENTRY BARRIERS, EQUIPMENT, EXCESS LIQUIDITY, EXCHANGE RATE, EXCHANGE RATE REGIME, EXPANSIONARY FISCAL POLICY, EXPANSIONARY MONETARY POLICIES, EXPENDITURE, EXPENDITURES, EXPORT GROWTH, EXPORT SECTORS, EXPORTERS, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL FINANCE, EXTERNAL FINANCING, EXTERNAL FUNDING, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SYSTEM, FIRM GROWTH, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FIXED CAPITAL, FIXED INVESTMENT, FOREIGN BANKS, FOREIGN CURRENCIES, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN EXCHANGE RISKS, FOREIGN INVESTMENT, FOREIGN INVESTORS, GLOBAL ECONOMY, GLOBAL TRADE, GLOBALIZATION, GOVERNMENT DEBT, GOVERNMENT REGULATION, GROSS DOMESTIC PRODUCT, GROWTH RATES, GUARANTEE FUND, INCOME LEVEL, INCOME LEVELS, INCOME TAX, INFLATION, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INSURANCE, INTELLECTUAL PROPERTY, INTERNAL AUDIT, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL FINANCIAL INSTITUTION, INVESTMENT CLIMATE, INVESTMENT CLIMATE REFORMS, INVESTOR CONFIDENCE, JOINT STOCK COMPANY, JUDICIAL SYSTEM, LABOR MARKET, LACK OF COMPETITION, LACK OF TRANSPARENCY, LAND POLICY, LAND TITLING, LEGAL IMPEDIMENTS, LEGAL SYSTEM, LEGISLATIVE FRAMEWORK, LIVING STANDARDS, LOAN, LOAN PORTFOLIO, LOCAL INVESTORS, LONG-TERM INVESTMENTS, MACROECONOMIC INSTABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET ACCESS, MARKET ECONOMY, MARKET REFORMS, MARKET SHARE, MATURITY, MATURITY STRUCTURE, MICRO DATA, MONETARY AUTHORITIES, MONETARY POLICIES, MONETARY POLICY, MONEY SUPPLY, MORTGAGE, MORTGAGE PORTFOLIO, MORTGAGES, MULTINATIONAL CORPORATION, NATIONAL BANK, NATIONAL SAVINGS, NATURAL RESOURCES, NEGATIVE SHOCKS, NON-PERFORMING LOANS, NPL, OIL PRICES, OUTPUT, OUTPUTS, PENSION, PENSION EXPENDITURES, PENSION FUND, PENSION REFORM, PENSION SYSTEM, PENSIONS, PERSONAL INCOME, POLITICAL ECONOMY, POLITICAL POWER, PORTFOLIO INVESTMENT, PORTFOLIO INVESTMENTS, POWER PARITY, PRICE STABILITY, PRICE VOLATILITY, PRIVATE CAPITAL, PRIVATE CAPITAL INFLOWS, PRIVATE DEBT, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE SECTOR CREDIT, PRIVATE SECTOR GROWTH, PRIVATIZATION, PROPERTY RIGHTS, PROPERTY RIGHTS PROTECTION, PRUDENTIAL REGULATION, PUBLIC DEBT, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC INVESTMENTS, PURCHASING POWER, REAL ESTATE, REAL EXCHANGE RATE, REGULATOR, REGULATORY FRAMEWORK, RETURN, RETURNS, RULE OF LAW, SAFETY NET, SAFETY NETS, TAX EXEMPTIONS, TAX POLICY, TAX RATES, TAX SYSTEM, TRANSACTION, TRANSPARENCY, TREASURY, TREATIES, TURNOVER, WAGE GROWTH, WORKING CAPITAL, WORLD TRADE,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20100927022217 http://hdl.handle.net/10986/2905
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